Readjust
your business/market scope to the spheres of business that you can
and must absolutely control. They are the 4 P's of marketing:place, product, price, & promotion. The 4Ps frame the business strategy and provide its implementing tactics.

The Four P's of Marketing

1. Place Trade Area: Where are your customers? Literally map where your customers reside. Trading Area: Where do your customers trade? Map the locations where your customers make their purchases. Choose and map your business location: Can customers find you? When they do, what will they find?

9 steps to place

This 9 step process defines trade area
boundaries, locates its trading areas, describes its
demographics, and selects a brick-n-mortar home. But before we proceed
let's reconfirm three definitions for clarity.

1. Trade Area - the total geographical area in which your customers reside. 2. Trading Areas - locations within a trade area where the action of trading takes place. 3. Location - the address you select to trade in a trading area.Step 1Trade area mapPrint a map of your prospective trade area with streets,
major geographical features, and census tracts. Select this link
to U.S. Census.

Step 2 Trade area barriersA barrier placed between a customer and a
retail location impedes their travel. People are inclined to
avoid barriers. They tend to drive to a location on their side of a
barrier, even if a convenient bridge or underpass is
present. Highlight natural or
man made barriers within the trade area that impede travel to trading
areas; this includes rivers, freeways, rail-road tracks, airports, mountains/hills,
etc.

Step 3 Local routesSeek and highlight popular local routes
within the trade area to churches, schools, local government, post
office, grocery stores, competitors, malls, commuter highways,
hospitals, ball parks, and other key destinations.

Step 4 Center focusSelect a feasible prospective location situated on a
local route between your customer prospects and the
competition.

Step 5 Circular mappingReturn to your trade area map. Draw a series of circles (feasible location at the center) with radii of 1 mile, 2 miles, 5 miles, 10 miles, 15 miles, 20 miles, and more if desired.

Step 6 Data spreadsheetReturn to the U.S. Census at https://www.census.gov/2010census/popmap/. Search for -- and create a spreadsheet list of -- the trade area census tract data within the circled area as follows: 1. List trade area census tract numbers in the first column. 2. Add the following demographic headings: - population, - # of households, - your targeted income groups - your targeted age groups - if relevant - your targeted gender 3. Insert the census tract data for each demographic.

Step 7 The guesstimate Add this column heading "%" to the
spreadsheet. Inspect the census tracts within each region created and bounded by the 'circles'. Given the trade area barriers, your local route
knowledge, and distance from the proposed location - guesstimate
the % of households that will choose to travel from each census tract
toward the proposed location versus competitors in the opposite
direction.Insert your guesstimate into its '%' spreadsheet column.

Step 8 The factored summationReturn to the spreadsheet. Add an
extra column next to each demographic. Multiply each census tract
demographic by the results of step 7. Enter each result into its
extra data column. - (population) x (Step 7 results) - (# households) x (Step 7 results) - (income group) x (Step 7 results) - (age group) x (Step 7 results)- (gender) x (Step 7 results)Sum each 'extra' demographic column. The totals of each 'extra' column are your exclusive trade area demographics.We're almost home.
The boundaries of your trade area are drawn. Its trading areas and local routes have been
identified. You have a clear demographic sketch of your customers. Now secure the location. Step 9 Head them off at the pass
Next to
committing money to the business, choosing a retail location may
be your most taxing business decision. In addition to its indoor practical
functions, a retail location via its store front can also become your most productive
promotional tool.
The best locations are positioned between
customers and significant competitors. In effect,
their store front signage 'heads them
off at the pass'. This better
location will cost more than alternatives. But it will deliver a
competitive edge that alternatives can only offset with increased
promotional expenditures; a cost typically much higher than the difference
between a lower cost location and a better location. With the previous three paragraphs in mind -- reconfirm the
budgeted rent outlined in the operation expenses of your trial profit
& loss draft. If needed, entertain the idea of reallocating
budgeted promotional funds to rent.
Enlist the guidance of a seasoned local Realtor who knows
the local travel paths of the trade area. As a rule, they are the
gray haired agents at a rear desk in a real estate office. Present
the agent with a list of your qualifying needs and wants. Include your budget for rent or purchase. A good real estate
agent is a sufficient. But also
speak to other retailers in the trade area. Take drives from
different points within the trade area to the proposed location. If your inquiries support your trade area data, and the location is
within budget, secure the location with a lease or a purchase.
If purchasing is an option, carefully consider
its long term commitment. It's easier to move from a lease than move and sell a location. On the plus side a purchase is an expense that transforms into an asset. Hire a lawyer to review the purchase or lease document before you sign. If a lease is the choice -- keep in mind that a lease is a negotiable document. Seek five years terms with the option to renew. You may even
consider writing and proposing an alternative. But be
reasonable. Eliminate what you cannot afford. Include what you must
have.
But keep in mind - a lease is a legal contract that you and a landlord
will have to abide by for many years. When an agreement is reached,
sign the lease.

2. Product
Define your product or service.
What are (and list) its competitive edges?
The product is you As
an AV Pro you deliver and install toe tapping mesmerizing
audio and video experiences derived from your knowledgeable mix of
product, physics, electronics, acoustics, light, music, and film.
Essentially you are the product. Therefore revise the product/service that you described in the 2nd paragraph of this chapter and add yourself to the description with enough swagger to 'strut your stuff' while falling just short
of showboating. 3. Price
What will your customers pay for your product or service?
What will you charge?

A price strategy for AV Pros

Price
is an apprehensive bipolar subject for many AV Pros. They fear
customers will walk if they don't offer deep discounts. They fear
they won't be able to pay their bills if they do. Price can determine whether profit is
maximized, profit is left on the table, or customers walk. The following outlines a strategy to triumph over
this apprehension. It is based on an old
retail proverb that remind us, "You don't have to drop your drawers to
close the sale.

Price as a screen
As an AV Professional your knowledge and
skills place you in a fortunate position. You can target a
demographic that assumes they will pay a premium price for premium
products and services. Use this premium position as a qualifying
tool to inform this group that you are the place for a better and
best result, which in effect screens out those who cannot afford what you
offer. But there are some qualifying limitations.

Survey says
I was involved in a retail
customer survey that revealed selection then price were our customer's
predominant concerns. Customers wanted enough selection to
believe they could make an
informed choice. They then wanted to ward off having a neighbor
tell
them they could have purchased their box for less elsewhere.

Strategic bundle
The following offers a strategy to alleviate customersurveyedconcerns while also easing AV pro apprehensions with a bundle of selection, price, and you. Selection
Do not hide inventory in the back room.
Put it on the sales floor. Customers will assume there's
still more in the back room. If feasible place empty boxes on
high selves around the perimeter of the floor. The boxes will
appear full to customers. Similar to the 'boxes in view' tactic,
offer 'one up/zero back'. That is; display at least one unit of
many AV brands. It will be assumed you carry the entire line of
each brand displayed. A room full of 'one ups', an inventory
crowded floor, plus the 'empty-assumed-full-boxes' will diffuse
customers concerns regarding selection.
If you do not have a retail location (you work from a
garage and truck) you are at a promotional disadvantage. However,
as part of your presentations -- use a binder or iPadslide show with photos of your favorite installation and available
products. That may be enough to support an appearance of
selection.

Price
Address the concern of price via a deep
discount (at a loss if necessary) on ONE essential high profile box: a
large screen UltraHD TV, projector, AV receiver, power amp, etc.
This price will serve as your declaration of competitive pricing
which in turn gives your customer the negotiating win they need to hang
their hat on when that nosy neighbor shows up. Price the balance
of the project at profitable margins. It's a win win.

Account for yourself
You are not in the business of selling
'big-box fast-food' audio and video cartons. You offer customized musical and
cinema experiences. As a fine restaurant menu that does not
itemize each ingredient and stir of the chef's spoon; I feel safe in
assuming that your proposals do not currently and literally account for your
knowledgeable mix of product, physics, acoustics, light, music, film, and years
of experience. Well, it's time to change that.From this day forward, place yourself as an itemized line
in your project proposals.

Proposed proposal- Line item #1 - You with a one or two line AV bio description:
Avid audio/video professional
delivering customized musical and
cinema experiences for 20+ years at a competitive price. - Line item #2 - The essential high profile discounted box and its price.
This is your declaration of competitive
pricing. - Line item - List each remaining electronic component with a block price
that includes all interconnects and miscellaneous parts.- Line item - List the speaker system as a block with a block price
that includes all speakers, cables, and miscellaneous parts.- If the project includes a whole-house system, Line item - each room/area as a block at a block price that includes all components, speakers, controls, cabling, etc.- Line item - the project installation in several blocks that includes: - Pre-wire - Trim out - System delivery, rough-in staging and setup - System calibration - video and acoustical calibrationplus finishing touch ups and adjustments. - Customer instructional walk-thru
Some will insist on a more detailed
itemized proposal in an attempt to have a competitor 'cherry pick' and
beat your price. If this is the case, tell them no. Walk
away.They do not value your knowledge and skill. They will not produce productive leads.Do
not allow this prospect to divert your scarce time from those who value what you do.

The absolute bottom lines
Expunge the apprehensive bipolar symptoms
of price. Pick up those hard earned dollars formerly left on the
table. Resolve the perceived obstacles of price and selection.
Exploit your competitive edge of delivering mesmerizing
toe-tapping audio and video experiences that cannot be found in a box
of any size. Do it with a strategic bundle of selection, price,
and you. 4. PromoteEngage and tell your customers who you are, offer your product/service, and close the sale.

Promotional message

Begin with a message that emphasizes the competitive edgesof your place, product, price, and staff. Compose the message with the assistance of this classic promotional advertising acronym - AIDA.

-
Get your customers Attention
(scream & wave), -
Then theirInterest
(highlight their want),
- Create Desire(offer a taste),
- And request
Action
(ask for the sale). Confirm
that you are who the message claims. If you're not, you will
be perceived
as
dishonest. That will kill your plan. Therefore, carefully reevaluate and revise your message until it is absolutely authentic, relevant, clear, and concise. Then include
this message in all of your promotional efforts; keep repeating it
over and over and over and over and ......

Promotional tactics

Commit a fixed % of sales to a
promotional
budget. Then choose from the four promotionaloptions
below. Allocate your budget per selected options.

Personal Sales
– All
promotional activity must be coordinated with the
sales staff. They must be prepared to tell your story and confirm the claims of your
promotional message. They are the face of the business that
must conclude the business of your
market plan -- close the
sale. (Refer your sales staff to AV Handbook Chapter Nine page 2)

Promotional calendarAllocate your annual budget and promotional choices to the calendar on a quarterly basis. This is your promotional plan for the entire year.

Business & marketing plan status

You have established a compass heading
-- your customer. You have scoped the economic/market
landscape and produced a marketing plan. Now put your plan into action. HandbookNote: The words advertising and promotion are too often incorrectly substitutedwith
the wordmarketing.
Advertising and promotion are subsets of the 4P of promote. Promote is a subset of marketing.Marketing is a business strategy plus its implementing 4P tactics of place, product, price, & promote.